Email this article to a friend

The California Public Employees' Retirement System, among the most powerful investors in the US, has nominated Arthur Levitt, former chairman of the Securities and Exchange Commission, to chair the New York Stock Exchange.

Last year the fund filed a lawsuit against the New York exchange alleging that it had failed to protect investors by not cracking down on improper specialist trading.

Calpers has now written to the exchange urging it to appoint Levitt to succeed interim chairman John Reed. The search for Reed's replacement started in December.

The US pension fund argues that Levitt's record of fighting for investors makes him an ideal candidate. "Investor protection was Levitt's top priority during his tenure at the SEC. He worked to educate, empower, and protect America's investors," Calpers said.

Calpers has also nominated Ralph Whitworth to the exchange's board. Whitworth is a founder and principal of Relational Investors, a $2.3bn investment fund which takes an active stance on corporate governance issues.

Sean Harrigan, president of Calpers, said: "Arthur and Ralph are prime candidates for the NYSE Board. They bring the skill and experience needed to ensure that investors have a quality and cost-effective marketplace."

The exchange invited nominations for board members earlier this month, giving a March 24 deadline for nominations.